Ripple is expected to go public once it has settled a case lodged against it by the US Securities and Exchange Commission (SEC), according to a major shareholder.
Japanese financial services company SBI Group is the largest outside shareholder of Ripple and is part of a joint venture with the crypto firm, which provides a money transfer service in Asia.
SBI Group CEO Yoshitaka Kitao dropped the news last Wednesday, arguing that both Ripple CEO Brad Garlinghouse and executive chairman Chris Larsen are interested in taking the company public. “After the current lawsuit, Ripple will go public”, Kitao said.
The prospect of an IPO is not foreign to Ripple. Last year, Garlinghouse said that the company could look into one, arguing that IPOs could become more common in the crypto industry, notwithstanding regulatory uncertainty.
He also said that Ripple is unlikely to be the first one to go ahead with an IPO but would be joining the leaders of the pack.
“We’re not going to be the first and we’re not going to be the last, but I expect us to be on the leading side. It’s a natural evolution for our company”, Garlinghouse said.
He was correct in his prediction as Coinbase was the first cryptocurrency exchange to go public earlier this year, a move that was considered largely successful.
The lawsuit against Ripple stipulates that the company led a $1.3bn unregistered security offerings, but in recent weeks, rumors swirled that the case would be settled allowing the company to move forward.